UK Landlord Forum / Life

New landlord here, don't know what i'm doing and could do with some advice on all matters relating to being a landlord.

What stage are you at?

Quote from: Riptide on July 03, 2014, 08:46:45 AM
What stage are you at?

Hi Riptide,

I have purchased a 3 bed house in the south east last year. (Only a cheap property nothing special)
Bought and had a a tennant move in two weeks later.
I withdrew my saving from the premium bonds and used the money for the deposit.
The idea is that by doing this i will increase my pension, if i live that long to enjoy it.....lol

If you would like some figures.

Property was up for £152,000 but purchased for £144,000
Deposit £36,000 on a repayment plan.
Rental return £850 p/m
Mortgage £570 p/m
Landlord insurance £9 p/m
Gas safety check £90

I think thats it...lol

May 2013 was when the tennant moved in but i have not seen an accountant yet for the tax side of things, i need to find one that will give me good advice not just tell me the government rules.  I pay enough tax in my day job so don't fancy paying any extra if i can help it.......we're all the same...lol

That seems like an ok yield. What have you done with the tenants deposit?

Expect to pay £1300  - £2000 in tax at the end of January 2015. Same amount every year there after.

That is if you have a job.

Put £100 a month away for your Tax NOW..... You will not get away with it.

Assuming this is a repayment mortgage ( which I know it is, as the numbers show this)

It's still a good deal, but the killer is you dont get tax relief on the proportion of the rent that is effectively paying off the capital that you owe...... Good luck my friend

Quote from: Riptide on July 03, 2014, 04:16:48 PM
That seems like an ok yield. What have you done with the tenants deposit?

The deposit was put into one of those government schemes through the letting agent who found the tennent,

Quote from: boboff on July 03, 2014, 05:05:46 PM
Expect to pay £1300  - £2000 in tax at the end of January 2015. Same amount every year there after.

That is if you have a job.

Put £100 a month away for your Tax NOW..... You will not get away with it.

Assuming this is a repayment mortgage ( which I know it is, as the numbers show this)

It's still a good deal, but the killer is you dont get tax relief on the proportion of the rent that is effectively paying off the capital that you owe...... Good luck my friend

I put most of the profit into premium bonds and i'l withdraw what i need when i get an account to sort out the tax.

Oh yes i have a job and pay 40% tax.

Thats what F$%@ me off about this country .... you help yourself by working hard and long hours and when you try to incrase your income other than your normal job you get hammered with more tax.  My worry is when i get a bit older will the government take my pension and assets off of me to pay for care when someone that has never worked gets the same care for free.............

Quote from: One house on July 03, 2014, 09:08:18 AM

Quote from: Riptide on July 03, 2014, 08:46:45 AM
What stage are you at?

Hi Riptide,

I have purchased a 3 bed house in the south east last year. (Only a cheap property nothing special)
Bought and had a a tennant move in two weeks later.
I withdrew my saving from the premium bonds and used the money for the deposit.
The idea is that by doing this i will increase my pension, if i live that long to enjoy it.....lol

If you would like some figures.

Property was up for £152,000 but purchased for £144,000
Deposit £36,000 on a repayment plan.
Rental return £850 p/m
Mortgage £570 p/m
Landlord insurance £9 p/m
Gas safety check £90

Amount paid to agent each month?

I don't mind paying tax, it pays for society.

I don't mind working.

My brother has mental health issues and lives on benefits, and has just spent 3 months in Hospital, 8 weeks in intensive care, he is now moving today to a residential home that is costing the best part of £1500 a week.

So on his behalf, can I thank you for your hard work!

Quote from: Riptide on July 04, 2014, 10:08:00 AM

Quote from: One house on July 03, 2014, 09:08:18 AM

Quote from: Riptide on July 03, 2014, 08:46:45 AM
What stage are you at?

Hi Riptide,

I have purchased a 3 bed house in the south east last year. (Only a cheap property nothing special)
Bought and had a a tennant move in two weeks later.
I withdrew my saving from the premium bonds and used the money for the deposit.
The idea is that by doing this i will increase my pension, if i live that long to enjoy it.....lol

If you would like some figures.

Property was up for £152,000 but purchased for £144,000
Deposit £36,000 on a repayment plan.
Rental return £850 p/m
Mortgage £570 p/m
Landlord insurance £9 p/m
Gas safety check £90

Amount paid to agent each month?

Only a tennant finders fee as my g/friend does all the dealings with the tennants and rent is paid direct debit.

Quote from: boboff on July 04, 2014, 10:39:45 AM
I don't mind paying tax, it pays for society.

I don't mind working.

My brother has mental health issues and lives on benefits, and has just spent 3 months in Hospital, 8 weeks in intensive care, he is now moving today to a residential home that is costing the best part of £1500 a week.

So on his behalf, can I thank you for your hard work!

I don't mind working hard either but i do mind the amount of tax that needs to be paid on any extra income, like i said i pay enough tax out of me full time job in which i usualy do around 60 hours a week on a 24 hour rota system.
I have nothing against anybody that needs care in this world but i do think charity begins at home and home is where we should be cash into resorces not in foreign coutries.

That a fair opinion.

My view is the opposite.

I think that all tax should be simplified, where ever and however you earn it, there should be no lower rate, and no National Insurance, just 35p in every £1 you earn (over a £12000 personal allowance), however you earn it goes to the government. And thats it, no stamp duty, IHT CGT, employers NI etc, make corporation tax the same, you wouldn't even need accountants then.

The point you make about government foreign aid, I think is right, because that particular way of handing out sweeties is political, the work done by charities like Red Nose and Children in need is not, which may be a better way of doing things. Certainly less African presidents with Swiss Bank accounts!

Anyway it's nice to discuss it.

Ah... the utopia of simple taxation.

I had HMRC write to me, well before I was a Landlord, telling me that I owed them £800 in tax and they would start taking it from me. What I especially liked about the letter I received from them was its accusing nature... as though I had done something myself to weasel my way out of this £800 tax sometime before and they, after - no doubt - an in-depth lengthy investigation, had - eventually - caught me out.

As I was PAYE - not doing any form of self-assessment - I managed to raise a quizzical eyebrow at that. After all, I don't decide how much tax I pay... I don't even really pay the tax, it is removed from my pay (by someone else, could it be HMRC who tell me employer how to do this?) at source... before it arrives with me, reduced by the correct amount of tax. Nutters.

Gotta love HMRC... even when they cock-up they can make it sound like you are the one in the wrong... goes to show that you can't trust even a system as supposedly simple as PAYE for a person who just has a steady - one - job. HMRC would hate a simple tax regime, I believe, because it would not allow them to bamboozle us suckers. I believe that they hire people to create tax rules with a special talent at obfuscation... then these people pass on the workarounds to highly-paid corporate accountants to help them navigate them successfully, again and again and again... one door closes, another one opens.

Bitter? A little bit. I genuinely dream of a simple transparent tax system.

hi everyone i,m a landlord virgin and desperately need some help 
i have purchased a new property and have a buy to let mortgage on my current property.
i intend to let it to my niece who is on dss single with 2 children.
here is the problem i also intend to let my daughter rent a room in the house also so would have them on separate tenancy agreements my daughter works full time.
the house was classed as a 3 bedroom initially but i have put a 2 storey extension on the side my daughter will live in that side of the house i have two bathrooms the only thing shared will be the kitchen and stairs.
my niece,s housing benefit will pay £525.00 towards the rent of £750.00 my daughter will pay £225.00 towards it that bit is between them as far as i,m concerned.
trying to find help is a nightmare as i,m aware dss would not be happy about this.
also there is the question of council tax,i dont know what to do about that.
can anyone please help me to get round these problems
many thanks

I suggest that you let the whole lot to your niece, and then have the niece do a "lodger" agreement with your daughter.

It's right legally, it pays to be honest with the council as well, as having a second "earner" in the house will effect what council tax and House benefit she gets.

There is no other way, if she tried to get housing benefit with sharing a kitchen then she is very likely to get allot less anyway.

If you separate the two dwellings your daughter will cop another full lot of council tax, albeit with a 25% discount for single occ.

Quote from: CRAIG on July 14, 2014, 11:54:06 AMi have purchased a new property and have a buy to let mortgage on my current property.
i intend to let it to my niece who is on dss single with 2 children.

Firstly, I do not mean to avoid your questions, but what you have written here concerns me a little bit and I would like to ask you about it to ensure you are fully covered.

Purchasing property with the intention of letting it to family (niece, daughter - both would count, I think) who are receiving benefits is sometimes frowned-upon... please look up "contrived tenancy" and reassure yourself that you are OK in what you are aiming to do. I'm not saying it is illegal or anything like that - nor am I saying the Council won't pay LHA in situations like this... just that you have to be very open with the Council and I believe they like to look at these situations in much more detail.

However, you might have already looked into all this, of course.